All Forum Posts by: Mike R.

Susan, I'd be careful. Although it is true that you are allowed to negotiate shorts while acting in the capacity of your license, recent laws that have passed may be able to construe other motives. (Personal opinion only as I'm not an attorney disclosure here!) It would also probably depend on what your goals are. Are you flipping? Buy & Hold? Owner occupant? In todays liberal law-suit happy society, someone could point a finger at you and say you didn't act in the seller's best interest while negotiating the short. Would the listing agent even allow you to do that and could they open themselves up by doing so considering their fiduciary relationship is to their client and none exists between you and the seller? Check out this NJ law that was just passed: http://www.njleg.state.nj.us/2010/Bills/AL11/146_.PDF

Lenders aren't going to allow a commission be paid to an agent that has an interest in the property as has already been mentioned. They also disclose that in a lot of their REO listings. One way around it could be if you are buying in an entity such as an LLC and representing the entity itself. I'd still be careful though. Another thought... would the listing agent be open to taking both sides and you negotiating a bigger referral fee than usual? Could you have another agent in your office put their name in as the buyer agent but you do all the work with the agreement the commission is yours? There are other solutions that could work but make sure you carefully read any affidavit that is put in front of you at closing to make sure there is nothing in there that could harm you. I'd make sure to have an attorney with me too.

I'm not far from you as I'm in South Jersey. But, let me ask you this... what if you could get it approved in 30-60 days without you nor the listing agent having to go through all the hassle of negotiations? What if the seller could get the deficiency waived, have it reported on their credit as satisfied instead of a short sale and have the 1099 waived? What if you didn't have to have countless BPO's conducted where you cannot understand how the price came in so high for a distressed property? All this while you and the listing agent also get your full commissions.

Yup, sounds too good to be true doesn't it? However, if you can believe it possible give me a shout and I'll tell you more.